I will be moving to Tucson, AZ this summer and am looking to do a live-in flip of a single or multi-family home. Currently searching for an agent who can help me with the search. I'll be visiting Tucson in late March to scout properties and make connections.
Some general questions on the Tucson market:
>Would you recommend live in flipping a single family or multi-family in the Tucson market? How is the rental market overall?
>What neighborhoods/areas should I focus on (I want to stay within 20 minute drive of Davis-Monthan Air Force Base and University of Arizona)? What areas should I avoid?
>Do you recommend flipping into a buy-and-hold rental or flip and sell?
Thanks in advance!
Well Welcome to Tucson! I've only been here for 6 months, but I really like the lifestyle here.
To answer your questions:
>Are you looking to buy and hold? Or are you looking you just flip in general? The rental market is hotter near the U of A, but the prices are also higher, which lower the CAP rates. The rental market has been pretty flat over the years, however has seen a small increase over the last couple years or so.
>The Air-Force base is a great idea, but there are areas to avoid on that side. Near the U of A is safer, but there's a premium to that. West of U of A isn't that nice, and I'd personally avoid, and anything south of 22nd is effy. We can chat about that more in detail later.
>This depends on your goals? Do you want to stay long term? There are definitely opportunities here to flip and hold/sell, but they are getting scarce, and you'd definitely need to be creative to find. By this, I mean that the market is hot, as anywhere else, so the spreads in flipping and even for a buy and hold (ie fitting the 1% rule) are difficult to find.
I have an agent to recommend, and will PM you. Good luck and happy investing!
The primary area that I’ve been looking for deals is North of 22nd St but South of Broadway and between Craycroft and N Campbell. What do you think of this area? It seems to be safe with reasonable home prices and rental values. It’s also equidistant between Davis Monthan AFB and the University which is a big plus for me.
I will likely be in Tucson for a year but there is a high likelihood that I get stationed back later in my career, so I would prefer to buy and hold if I can find a deal that cash flows.
@Trevor Muzzy , Trevor, with VA loan qualification, you can Easily buy and hold and move to your next location. I would highly recommend buying either SH or MFH, and simply rent out when you are stationed elsewhere. The area, east of Craycroft is definitely best accessible for you. However, I would extend the search south to Golf Links. Lots of valuable properties in that area/ All the best.
I am an agent in Tucson. My partner and I do 4-5 wholesales to investors a month. But these are cash only close in 10 days no inspection deals. If you're looking to finance an on market "deal" then you have to go into it with the understanding that any deal on the market is going to get multiple offers on the first day. You can contact me if you have any questions about the Tucson market.
@Trevor Muzzy Although I am also a licensed agent, but I work with off market before they hit the market. The MLS is too crowded for investors. For VA loan, I believe you only qualify for SFH. But if you would like to invest above VA funding, I would highly suggest Multifamily.
@Ari T. not true. You can purchase multi family with VA as long as you occupy one unit. You can also purchase manufactured homes.
@Trevor Muzzy I would suggest that you speak to @Cisco Hood to get an investor's perspective of the Tucson market. Cisco moved his family from Colorado in great hopes of doing a house hack flip. He may be able to offer you some great insights on his experience, as well as his take on the Tucson market. He is currently trying to sell his flip.
Best of luck to you!
Hey Trevor! That area North of 22nd, south of broadway between craycroft and campbell surrounds the Zoo/park I think that would be a good place to get in if you can find a property were the numbers make sense to you. You Could also expand north towards grant and over to 1st Ave. that still keeps you close to UofA. In the 2 years we've lived here a lot of the neighborhoods in those parameters appear to have improved from when we first got here. South Tucson has a bad reputation for crime but i know of a investor that only buys multi families in South Tucson because from his experience the he can still get a solid tenant with few issues and its easier to find properties that cash flow.
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